We now live in perilous times. We may have been safe 10 year's ago, but not today. Our various governments, federal, state and local have spent themselves into bankruptcy. My local community of about 175,00 is 480 million in debt!
The US government is so far in debt after the last two years that it may never recover. It daily prints huge sums of paper currency, backed by absolutely nothing, and uses it to pay off interest payments. This method of dealing with our debt will ultimately collapse and when it does, a catastrophic failure of our economy will occur.
The dollar will struggle over a long period as it decreases in value, creating huge inflation and perhaps even hyperinflation. Daily fluctuations in value will become common.Paper money will become near worthless and a simple loaf of bread may cost $300.
Savings and retirement accounts will be wiped out! The stock market will tank and stock and bond portfolios will morph into piles of worthless paper. A new term for paper currency will emerge: "trash cash."
Gold, especially in small quantities, will become the new money. Gold has thrived over 3,000 years as real money because it, unlike paper, has intrinsic value (it is rare and cannot be duplicated).
Gold has almost quadrupled in value over the past 20 years and substantial growth is predicted over the next 10. A 21% increase is predicted by the end of 2011.
If this once great economy falls, gold will be king, the great "equalizer." Wealth will then be determined by gold ownership and gold ownership alone.
